Given the following information on Ke-Ma-Gen Ltd., what is its WACC? Retain as many decimal places as possible in your intermediate answers, and round your final answer (in percentage) to two decimal places. (11 marks)

Debt:

Number of bonds = 6000

Par value = $1000

Coupon rate = 8% (semi-annual coupons)

Time to maturity = 10 years

Market value = 97.5% of par

Common Equity:

Number of shares outstanding = 1,000,000

Par value = $1

Price per share = $5.00

Dividends per share = $0.70

Preferred Equity:

Number of shares outstanding = 50,000

Price per share = $20

Dividend yield = 5%

Other information:

Tax rate = 35%

Equity beta = 2

Market risk premium = 11%

Risk-free rate = 5%